Lutheran Legacy Foundation is a Community Foundation
About Community Foundations
- Are exactly what the name implies—foundations for the benefit of a community. Lutheran Legacy Foundation exists to serve the Lutheran community.
- Receive and manage charitable dollars intended to be permanent endowments. The income, or a set percentage of the fund, is distributed to support specific organizations or causes chosen by the organization or the community foundation.
- Are responsible for investing the funds. Typically, they hire professional money managers to invest for the foundation. At this time, Lutheran Legacy Foundation monitors the performance of the managers and makes changes if necessary. We consistently monitor manager performance.
- Are an ideal place for Lutheran churches, schools and agencies to house their endowments.
Community Foundation Characteristics
Community foundations can pool multiple funds for investment while accounting separately for individual endowments. The larger fund allows for greater investment diversification.
Funds in a community foundation not only experience wider diversification, but the pooling of assets also reduces management costs.
Lutheran Legacy Foundation has managers with the experience and know-how to effectively manage and monitor your funds. This is often preferable to relying on the expert in your congregation, who though well-intentioned, may or may not have the time, and may be subject to personal criticism.
Community foundations have variance power. When the original charitable designation of a fund is impossible, a different charitable purpose consistent with your desires may be chosen. Your organization’s charitable intentions remain even if circumstances change.
Working with a Community Foundation
Lutheran Legacy Foundation is committed to providing sound management of fund assets. We will do all within our power to preserve capital, maximize returns and give you the chance to accomplish more for your mission and ministry.
The Lutheran Legacy Foundation board of directors chooses the managers of investments placed in the foundation. The board encourages a well-rounded group of investments, with short- and long-term growth and diversity as considerations. View our Investment Policy.
The board works to be the best possible steward of assets. We monitor manager performance on a regular basis and take necessary action based on performance or procedure change.
Distributions from Your Endowment
Funds make distributions on a regular basis or on an “at request” basis. All funds are encouraged to take distributions, but there is no legal requirement to do so.
The minimum initial amount for an endowment fund with the Lutheran Legacy Foundation for churches, schools and organizations is $10,000.
Fees for Services
The Lutheran Legacy Foundation assesses an annual fee of one-and-a-quarter-percent (1.25 percent) for managing endowment funds. Unusual direct costs are assessed directly to the fund. The 1.25% fee is assessed quarterly and is based upon the ending fund balance for that quarter.
Each endowment fund will receive regular correspondence from the foundation, including quarterly financial reports and periodic foundation activity updates. IRS and other regulatory reports required for your endowment will be submitted by the foundation to the proper authorities on your behalf.